Coastal Home Owners Need to Brace for Hurricane Season

It seems the storms get more severe every year and the financial toll keeps climbing with every hurricane season. For many Americans, the hurricane season is something they only see on the news. But for owners of coastal homes, it is a part of life. The hurricane season runs from June 1st to November 30th. Some years are worse than others, but people living on the coast or planning to purchase a coastal home must always be prepared for the worst case scenario.

Before the hurricane season
A below-normal hurricane season doesn't mean people living near the coast are going to avoid the catastrophic impact tropical storms can cause. The should always be ready to respond quickly and have some basic supplies readily available.

• Know what evacuation route you will use. Keep in mind that thousands of other drivers will probably be using the same roads.
• Have a disaster kit for each family member and be sure they know where it is. It should include a flashlight, batteries, first aid supplies, food, cash and identification. It is a good idea to have a crank charger and spare battery for cell phones and flashlights.
• Be prepared to remain in your home for several days without power or supplies from the store. You may want to seriously consider a backup generator that is capable of powering the entire home.
• During times of crisis, communication is always difficult and cell towers are pushed to their maximum capacity. Prepare a family communication plan well in advance of any emergency.
• Many coastal communities have alert systems to send emergency notifications by text or email. When moving to a new area sign up for these alerts by searching the community name plus "alerts" on the internet or contacting the area fire department and first responders.

Preparing your home
A person's home is often their place of comfort and protection during life's many storms. But these well-built structures are vulnerable to forces of hurricanes and severe storms. Some advanced planning can reduce risks and minimize the financial toll when storm damage occurs.

• Evaluate your home insurance policy for adequate coverage. Most standard policies do not include flood insurance. You should also add coverage for any exterior buildings or other features that could be costly to replace.
• Routinely inspect your rain gutters and down spouts. They should be clear of debris and securely attached to properly divert water away from your home during heavy rains.
• Have wood cut to size for quickly boarding up windows. Storm shutters are the best protection, but more costly. Taping windows and doors provides absolutely no protection.
• Doors should have multiple locking mechanisms to prevent them from flying open during a storm. Open windows and doors increase internal pressure under the roof and can lift it off the house.
• Consider installing hurricane straps that will securely attach the roof to the rest of the structure for added strength.

The inevitability of hurricane season does not mean people can't enjoy the many benefits of living near the coast. Everyone has to prepare for emergencies. Everyone's life has some storms. There are lessons to be learned during sunny weather and things to learn during storms that will enhance a person's life. In addition to protecting your own home and preparing your family for emergencies, participate in community events and take part in helping others prepare for hurricane season. A strong and resilient community needs your participation. By participating in community activities, you help minimize the disruption a storm can cause and help thing get back on track sooner. Remember to include your pets in the disaster planning and have some extra food on hand for them.

Home buyers should consider each loan type prior to viewing homes

As the home market improves, many buyers are considering a purchase in the near future. Despite the responsibilities that come along with owning a home, for most people, it is more rewarding than renting can ever be. The type of mortgage many buyers used during the run up to the housing market collapse is what lead to them being in trouble when the economy began to sour. Before looking at any houses, home buyers should know which mortgage is best suited for their goals and plans. Here is a bit of information on the most common types of home loans.

30-year fixed rate mortgage

Because it allows buyers to purchase the most home with affordable monthly payments, the 30-year fixed rate home loan remains the most popular. On September 1, 2015, the rate was at 3.75 percent. That is up slightly from the previous week and the number of applications increased by more than 11 percent due to positive economic news. In addition to the standard 30 years, fixed rate loans are available in terms of 10,15, and 50 years. The interest rate remains constant for the life of the loan and home owners know what their monthly payments will be regardless of inflation or other fluctuations in the economy.

Adjustable rate mortgages (ARMs)

Many home buyers were caught holding adjustable rate mortgages during the housing crisis. They had planned to refinance or sell their home prior to any increase in their interest rate and monthly payments. When the housing bubble burst, they were unable to sell or refinance and many were unemployed or getting by on less household income.
The rate and monthly payment is adjusted at specific times during the life of an adjustable rate mortgage. The increase or decrease is typically tied to market behavior. Buyers can get the same house as with a fixed rate mortgage for a lower initial payment. The adjustable rate loan remains popular with buyers who do not plan to remain in their home more than five years. Anyone considering an adjustable rate loan should be sure they can comfortably afford their monthly payments, even if the interest rate increases to the maximum possible amount.

Interest only loan

Another loan that lead to trouble for many home owners during the Great Recession was the interest only loan. For a predetermined amount of time, the home owner is only required to pay interest on the loan amount. The interest may be fixed or adjustable. At the end of the term (typically 5 or 10 years) the home owner must refinance or begin paying both the interest and some amount toward principle. Just as with an adjustable rate loan, home buyers should plan for a worst case scenario of not being able to sell their home or refinance.

Federal Housing Administration loan (FHA)

Contrary to what many home buyers believe, an FHA loan is not a government loan. It is written by a privately owned company and insured by the federal government. The qualification requirements for an FHA loan are more lenient than the requirements for a conventional loan. The down payment and closing cost are also much lower for buyers who are purchasing their primary residence. For first-time buyers the down payment can be as low as 3.5 percent. The loan is available on site built homes and mobile homes. There are also special programs for seniors.

U.S. Department of Veterans Affairs (VA loan)

This loan is available to veterans or their widows/widowers. The number of years in service affects the requirements and terms of the loan. Which type of discharge the veteran received from their branch of the U.S. Armed Service also impacts their eligibility requirements and loan terms. Most people who qualify for a VA loan can also obtain a conventional loan with similar interest rate. The main benefit to veterans is that they can get a VA loan with no down payment.

Home buyers should plan for their home purchase months in advance. It is best to review credit scores prior to meeting with loan officers or mortgage brokers to avoid any surprises that could hinder them from qualifying for the best possible loan.

Home owners, winter storms and falling trees

During the fall and winter months, hundreds of trees will be falling in yards and on houses across America. The problem begins during hurricane season and continues through winter. Heavy snows and ice storms frequently get the best of century-old trees. The odds of your home (and you) been struck by a falling tree increase based on the age of the trees nearest your house. Here are a few other things to know and to help you in the event your house is struck by a falling tree.

Who is responsible?

If a tree falls on your house, most likely your homeowners insurance will have to pay for damages. If a tree falls in your yard and does not damage your home, most likely you will be responsible for the clean up out-of-pocket. Even if the tree was located on your neighbor's property, you could still have to make the claim on your policy, pay the deductible, and be responsible for any cost not covered by your policy. If your insurance policy is basic and for your residence only, it may not cover damage done to outbuildings, fencing, pools, or your lawn. The reverse is typically true if a tree from your yard falls on a neighbor's house. The exceptions are when the tree fell due to disease or was properly documented as being a hazard.

Identifying diseased trees

Just like people, as trees age, they become more susceptible to disease and falls. During the first 25 years of a tree's life, it should not lose a notable amount of limbs. As it gets older, limbs fall off more frequently and the size of the falling limbs increases. This is why the Arbor Day Foundation recommends having a trained arborist inspect older trees and advise on proper care. Some basic identifiers indicate a diseased tree:

Uneven growth patterns: previous damage from storms or wind can cause trees to grow lopsided and be a higher risk for falling.

Decay: Because decay often begins inside the tree, look for signs like mushrooms, fungi, and soft crumbly wood. Mistletoe is also a fungus. Its presence indicates some internal decay.

Dead wood: Occasional dead branches are normal for any mature tree. Any large branches that show signs of dryness and bark loss should be removed immediately.

Cracks: Deep splits in limbs or spots with missing bark indicate the tree's structure is failing.
Documenting a hazardous tree

Start by discussing your concern with your neighbor. It is a good idea to document your request that they remove a hazardous tree. Additionally, photos and an assessment of the situation by a tree professional may help your case in the event the problem tree does tumble. It is still possible your home insurance will have to pay for damages, but having the documentation improves the likelihood that your neighbor will have to foot the bill. It is far better than just you saying "I knew it was going to fall" after the fact.

If a tree falls on your home

Falling trees may also bring down power lines. If you are inside the home, cautiously exit the structure. The weight of the tree against your house is causing continuous pressure. The roof and other support structures do not always give way immediately. If power lines are down, call the police, power company, and then your insurance company.

Do not try to make repairs during a storm or rescue personal items. Understand that emergency services are stretched thin during inclement weather, and there are numerous other people in a similar situation. If a tree falls on your automobile, it is going to be a matter for your auto insurance and probably covered by comprehensive insurance. When it comes to falling trees, a few hundred dollars in prevention can be worth tens of thousands of dollars in repair.